Restaurant Value in Divorce Relies on Mere 2x Multiple of Average Annual EBITDA

Business Valuation UpdateVol. 17 No. 3
Legal and Court Case Update
March 2011
5812 Eating and Drinking Places
722511 Full-Service Restaurants
marital dissolution/divorce
fair value

Shewbart v. Shewbart (II)
2010 WL 5030125 (Ala. Civ. App.)
December 10, 2010
US
State Court
Alabama
Court of Appeals
Carter Norvell (wife)
Moore

Summary

Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.

See Also

Shewbart v. Shewbart (II)

Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.